Has GVC Holdings just dealt the winning hand when it comes to Bwin.party?
The gambling group has upped its offer for the site in an effort to lure shareholders away from the deal made by rival suitor 888 a fortnight ago.
GVC has offered the company 122.5p per share, which will include up to 25p in cash and the rest in new GVC shares.
It's a significant increase on the previous offer, made in tandem with partner Amaya, for 110p per share, which was dismissed because the two businesses had planned to split Bwin.party in two.
It is also much higher than the 104.09p per share on offer from 888, made on 17 July.
GVC's investors aren't enthusiastic: the Aim-listed group's share price was down 1.3 per cent in early trading. Conversely, Bwin's share price was 1.3 per cent.
GVC said it would finance the offer through a combination of issuing new shares and a €400m senior secured loan, taken out from affliates of Cerberus Capital Management.
It also plans to raise £150m through a further share issue to fund restructuring costs, the refinancing of Bwin's debt and cash for “working capital purposes”.
“If a transaction were to be completed, the GVC board believes that cost reductions exceeding €135m per annum would be achieved across the enlarged group by the end of 2017,” it said.